THE JORC CODE 2012

1
 There Are Two Current JORC Codes,
The 2004 and 2012 Editions

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 Introduction
Why was there a need to revise the 2004 Code? A little background:
• A number of ASX Companies Updates had been issued between 2005 and 2008
related to JORC Code matters.
• In October 2011, the JORC Committee released an Issues Paper to stimulate
discussion and comment on how the JORC Code could be improved.
• The Issues Paper attracted 114 written submissions, as well as significant
additional feedback received through public forums and meetings.
• Comments on the Issues Paper confirmed strong support for the JORC Code to
remain a principles-based professional Code. Comments also highlighted there
was a need for improved disclosure standards, and a greater balance between the
core principles of Transparency, Materiality, and Competence in Public Reporting.
• Evaluation of the responses enabled JORC to prepare an Exposure Draft of the
2012 JORC Code which was released for public comment in September 2012.
• In addition to many comments made in consultation forums and meetings, JORC
received 82 written submissions in response to the Exposure Draft.

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 2004 JORC Code—Distortions of
Principles
Overemphasis on the principle of Competence to the
potential exclusion of Materiality and Transparency has
been common.
The feedback from the consultation to both JORC and
ASX was, overwhelmingly, that greater transparency in
the reporting of the required material information was
necessary to better inform investors.
Comments on the exposure draft of the JORC Code
issued in September 2011 and draft Chapter 5 of the
new ASX Listing Rules also reinforced this response.

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 Clause 2 2004 Code
“2. In this edition of the JORC Code, important terms and their
definitions are highlighted in bold text. The guidelines are placed
after the respective Code clauses using indented italics. They are
intended to provide assistance and guidance to readers. They do
not form part of the Code, but should be considered persuasive
when interpreting the Code. Indented italics are also used for
Appendix 1 – ‘Generic Terms and Equivalents’ and Table 1 – ‘Check
List of Assessment and Reporting Criteria’ to make it clear that
they are also part of the guidelines, and that the latter is not
mandatory for reporting purposes.”
This statement (in red above), together with all of the examples
being negative, was taken by many Competent Persons as an
opportunity not to report all material information.

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 Clause 2 2012 Code

“2. In this edition of the JORC Code, important terms and

their definitions are highlighted in bold text. The guidelines
are placed after the respective Code Clauses using indented
italics. Guidelines are not part of the Code, but are intended
to provide assistance and guidance to readers and should be
considered persuasive when interpreting the Code.”
Indented italics are also used for Appendix 1 – ‘Generic
Terms and Equivalents’ and Table 1 – ‘Check List of
Assessment and Reporting Criteria’ to make it clear that they
are also part of the guidelines, and that the latter is not
mandatory for reporting purposes.
Further guidance on the importance of material information
is now included in Clauses 5, 19, 27, 35, and the introduction
to Table 1.

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 2012 Code—Introduction of Some New Terms
Significant project:
• “An exploration or mineral development project that has or could have a
significant influence on the market value or operations of the listed company,
and/or has specific prominence in Public Reports and announcements.”
(Appendix 1).
Also the definition of a Material project in ASX Listing Rules
Material change:
• “A material change could be a change in the estimated tonnage or grade or in
the classification of the Mineral Resources or Ore Reserves. Whether there has
been a material change in relation to a significant project must be considered by
taking into account all of the relevant circumstances, including the style of
mineralisation. This includes considering whether the change in estimates is
likely to have a material effect on the price or value of the company’s securities.”
(Guideline to Clause 5).
‘if not, why not’:
• “means that each item listed in the relevant section of Table 1 must be discussed
and if it is not discussed then the Competent Person must explain why it has
been omitted from the documentation.” (Guideline to Clause 5).

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 Public Reports
To comply with both the 2012 JORC Code and the
revised ASX Listing Rules for significant (material in ASX
Listing Rules) projects when reporting initial results or
estimates or reporting results or estimates which have
materially changed from when they were last reported,
the following information needs to be prepared:
• Competent Person’s internal documentation.
• Public report addressing all those points identified as requiring prominent
reporting in ASX Listing Rules 5.7, 5.8, and 5.9, in the body of the public
report.
• As an appendix to the public report, a completed Table 1 for the relevant
sections of the table as identified in the ASX Listing Rules, on an “if not, why
not” basis.

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 The key changes in the 2012 Code
• The requirement to report against Table 1 on an ‘if not,
why not’ basis for initial or materially changed reports of
Exploration Results or estimates of Mineral Resources or
Ore Reserves for significant projects — Clauses 2, 5, 19, 27,
35, and the introduction to Table 1.

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 The key changes in the 2012 Code (2)
• Competent Person attributions — Clause 9.
• Exploration Target — now defined in the revised Clause 17.
• At least a Pre-Feasibility Study required for an Ore Reserve
declaration — Clause 29.
• Technical studies definitions — Clauses 37, 38, 39, and 40.
• Metal equivalents — Clause 50.
• In situ or ‘in ground’ values — Clause 51.
• Additional guidance on reporting requirements for
Competent Persons — Table 1 body of table.

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 Stock exchange listing rules
• Public reports made via the ASX or other stock
exchange need to consider the rules of the exchange
as well as the JORC Code

+ Listing Rules (For example, in Australia refer

to ASX Listing Rules & Guidance note 31)

= Public Reporting that meets all

requirements

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 Reporting Environment and Compliance
Australian reporting environment and other jurisdictions:
• Australian Securities Exchange (ASX) Listing Rules and relevance to
minerals reporting
• Australian Securities and Investment Commission (ASIC)
The amended Listing Rules contain:
• Requirements parallel with the 2012 JORC Code, for the reporting of initial
or materially changed Exploration Results, Mineral Resources, or Ore
Reserves.
• Requirements additional to the 2012 JORC Code including:
– Reporting of historical estimates and foreign estimates of mineralisation for
material mining projects.
– Reporting of production targets.
– The requirements for Annual Reporting of Mineral Resources and Ores
Reserves.
– Competent Person Requirements.
• Terms of a mining joint venture agreement.

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Extract from ASX Amended rules, ASX website 8 November 2012: http://www.asxgroup.com.au/compliance-downloads.htm
Note the + sign refers to a defined term in Chapter 19 of the ASX Listing Rules
 Reference to the JORC Code
(Appendix 5A) in the Amended ASX
Listing Rule 5.6

Note production targets are not included in the JORC Code

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Australian Reporting Environment
Australia
Responsible Professional & Industry Organisations Statutory / Semi- Regulatory Organisations
Entities Government
Organisations

AusIMM, AIG MCA ASIC

ROPOs

JORC ASX

Compliance &
Guidance Standards Corporations
Law
JORC Code Incorporated as Appendix
Listing Rules
Competent Person

Those Required
to Comply
Professionals Publicly listed companies
 EDUCATION EFFORT

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 Roll out of new Code and Listing Rules

Joint ASX ASIC JORC road shows:

In all mainland state capitals, over 1100 attendees
in Perth and more than 2000 country wide.
Workshops and seminars:
In all mainland state capitals, mining centres, New
Zealand and several overseas venues
Web based seminars available shortly

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 Frequently asked questions

Joint ASX ASIC JORC initiative:

FAGs issued in two tranches and downloadable from ASX
and JORC websites.
AusIMM Monograph 23 being revised and
reissued as Monograph 30 in early 2014
Covering new development and reporting under the
enhanced reporting standards JORC 2012 and Revised
ASX Listing Rules.

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 JORC the committee

State of renewal after the revision

New Chair Steve Hunt to take over in December
Several new representatives from the MCA,
AusIMM and AIG reviewing representation.
Attempting to maintain continuity but
reinvigorate for the next review.
Ian Goddard and Peter Stoker to remain as
CRIRSCO representatives for the time being.

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 Acknowledgements
To my JORC colleagues for preparation of some of the material included in this
presentation and to JORC and its parent bodies for their support

And my CRIRSCO colleagues:

A strategic partner of

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